China's PMI Drops to 5-month Low of 52.9% in January

China´s manufacturing sector purchasing managers index (PMI) fell to a five-month low of 52.9 percent in January, compared with 53.9 percent in December, the China Federation of Logistics and Purchasing (CFLP) said February 8.

The January figure means the benchmark index for economic expansion has kept above the boom-and-bust line of 50 percent for 23 consecutive months.

Analysts said authorities´ moves to cool prices prompted the decline.

Haitong Securities analyst Liu Tiejun attributed the decline to the government´s tightening measures and the seasonal effect of the Spring Festival, or the Chinese Lunar New Year, which falls on Thursday.

The PMI is a package of indexes that measure the performance of the country´s manufacturing sector.

A reading above 50 percent indicates economic expansion. One below 50 percent indicates contraction.